Question

Which of the following is a disadvantage of divisional structure?

पर्याय

• Conflict may arise among different divisions with reference to allocation of funds.

• More emphasis on departmental objectives.

• Leads to inter-departmental conflict.

• Leads to inflexibility.

Answer 1

Conflict may arise among different divisions with reference to allocation of funds.

Explanation -

Different divisions may have disagreements on budget allocations, and a specific division may strive to maximise its profit at the expense of other divisions.